Bank Customer: If you have an account in any of these 3 banks: Then your money is safe

In the last one week, two American banks namely Silicon Valley Bank and Signature Bank have collapsed. A third bank, First Republic Bank, was bailed out with a 30 billion bailout from other major banks. Bank Customer: If you have an account in any of these 3 banks: Then your money is safe.Three Indian banks SBI, ICICI and HDFC are very important banks for Indian economy.

Although the collapse of the American banks did not affect the Indian banking system, this incident of one bank after another has increased public concern. People worry about what will happen to their money if their bank fails. Three Indian banks SBI, ICICI and HDFC are very important banks for Indian economy.

The government cannot afford the collapse of these banks. RBI has placed these banks in the D-SIB list. Strict rules are made for them. If this happens, the government provides insurance cover up to five lakh rupees. But did you know that there are three too-big-to-fail banks in India? Such banks are called D-SIBs. RBI has considered ICICI Bank, SBI and HDFC Bank as D-SIBs.

What is D-SIB? In technical terms, a domestic systemically important bank. This means that no matter how important the banks are to the country’s economy, the government cannot afford to fail them. Because their drowning can disrupt the country’s economy. This can create financial crisis and panic situation.

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The system of declaring banks as D-SIBs started after the 2008 financial crisis. Then many major banks in many countries collapsed. This led to a prolonged financial crisis. Since 2015, RBI releases list of D-SIBs every year. SBI and ICICI Bank were the only D-SIBs in 2015 and 2016. HDFC is also included in this list since 2017.